The Information Technology sector is “recession-proof.” says Rishad Premji.
The IT sector is “recession-proof,” as clients will spend on the business transformation or cost take-out deals, said Rishad Premji, executive chairman, Wipro.
His comments came as the IT services industry is expected to see a sharp fall in revenue growth to 12 to 13 percent in the Financial year 2023 from 19 percent in FY22, which is the steepest fall in 8 years, according to rating agency Crisil. He added that clients had not stopped decision-making on deals and spending amid inflation and recession fears.
The decline in revenue growth of the IT sector is due to the tightening of IT expenditure by global corporates amid the inflationary headwinds in the United States and European Union.
Wipro had plans to manage costs by reorganizing the employee pyramid structure by inducting more freshers into the company.
The Indian IT major has announced its plans to hire 40000 freshers, double of last year, in the current financial year.
It said the company has no significant capital expenditure planned in the country as it had just completed a large capex cycle for its development centers in India in March 2020. However, it will create experience and innovation centers for customers in developed markets.
